Question
Problem 7-33 TIPS Total Return (LG7-2) Consider a 4.60 percent TIPS with an issue CPI reference of 198.8. The bond is purchased at the beginning
Problem 7-33 TIPS Total Return (LG7-2) Consider a 4.60 percent TIPS with an issue CPI reference of 198.8. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 206.7. For the interest payment in the middle of the year, the CPI was 208.3. Now, at the end of the year, the CPI is 212.8 and the interest payment has been made.
What is the total return of the TIPS in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
What is the total return of the TIPS in percentage? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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